Markets Reel as Trump’s Tariff Talk Rattles Global Shares

Global stock markets reacted negatively to President-elect Donald Trump's proposed tariffs on Mexico, Canada, and China, with indices in Europe and Asia largely declining. Wall Street's prior gains were driven by Treasury yields easing following Trump's choice of Scott Bessent for Treasury Secretary. Upcoming inflation data may influence Fed rate decisions.

Global stock markets retreated on Tuesday following President-elect Donald Trump's declaration of sweeping new tariffs on Mexico, Canada, and China. His comments have spurred renewed concerns among investors.

European markets saw declines, with France's CAC 40 dropping 0.9% and Germany's DAX slipping 0.6%. Britain's FTSE 100 shed 0.5% as the effect rippled across continental GDP giants. Asian markets also registered slides, notably Japan's Nikkei 225, which fell 0.9%.

U.S. shares had previously rallied, bolstered by potential economic gains from lowered interest rates before Trump's announcements unsettled markets. Analysts dubbed the easing Treasury yields a "Bessent bounce," referencing Trump's choice of Scott Bessent as Treasury Secretary. His fiscal policies inclined towards deficit reduction could ease Wall Street's deficit-related worries.

(With inputs from agencies.)